December 12, 2024
Michaela Althouse/PhillyVoice
City Council advanced legislation that authorizes the proposed 76ers arena out of committee Thursday morning after multiple postponements.
City Council voted to advance legislation that authorizes the construction of the 76ers arena Thursday, setting the stage for a final vote on the project.
Council voted 12-4, to move the bills out of committee, with Councilmembers Rue Landau, Jamie Gauthier, Jeffrey Young and Nicolas O'Rourke in opposition. They had cited concerns over the community benefits agreement and SEPTA service during public hearings on the arena held over the past four weeks. Kendra Brooks, another staunch opponent, was absent.
The vote proceeded after multiple delays. It originally was scheduled to take place Dec. 5, then Wednesday morning, then Wednesday afternoon, before commencing Thursday morning — more than an hour past the scheduled 8:30 a.m. start time. Council President Kenyatta Johnson repeatedly cited ongoing negotiations with the team as the reason for the postponements.
Over the course of those delays, the total amount in the community benefits agreement fluctuated wildly. The 76ers had long refused to budge from their proposed $50 million, even as council members circulated amendments to double it to $100 million Wednesday. As hearings resumed Thursday morning, the number had lowered to $75.75 million. But the amended CBA that council members voted out of committee was $60 million.
That agreement, according to an updated copy of the amendment, would allocate $33 million for investments in Chinatown and adjacent neighborhoods — an increase of $11.4 million from the last CBA proposal. Most of that sum will support the arena services district, which would develop plans to manage traffic and maintain cleanliness and safety, among other responsibilities. It will receive $17.5 million, a jump from the $14.15 million originally allocated.
The business disruption fund, designed to grant funding to small businesses impacted by the construction, also grew from $1.6 million to $5 million. So did the allocation for the new neighborhood security sub-station. The team will issue a one-time payment of $3 million, up from $1.5 million, to support its creation.
New line items include $2 million for a Chinatown legacy business grant program, funding businesses that have operated in the neighborhood for over five years, and $250,000 for a Chinatown Community Land Trust. It would help guard the area "from unchecked development."
The latest CBA features slightly decreased citywide investments, with some line items slashed entirely. A plan to provide free tickets to home games to public and charter school students is gone, as is a proposed expansion of the 76ers neighborhood basketball league. A community use allocation, which would make the arena available for five community events per year, was also dropped — much to the displeasure of anti-arena protesters in the council chambers.
The team will instead budget $1 million for Parks & Recreation facilities, particularly for basketball courts, and another $1 million for an apprenticeship program. The Philadelphia City Fund also will receive $3.5 million for grants to organizations supporting the city's children.
None of these payments would begin until the Fiscal Year 2026 at the earliest.
The 76ers called the advancement "an important next step in building 76 Place," but implied they had not signed off on the latest CBA.
"We are reviewing the amendments that were added today to ensure they align with our understanding of our agreement with the City," a spokesperson said in a statement.
As council members prepared to vote on the legislation, activists for and against the arena traded chants. Individuals affiliated with the No Arena Coalition, which has long raised concerns over the potential displacement of Chinatown businesses and residents, yelled "$50 mil, $100 mil, the whole thing is a sellout deal." (As the CBA total changed, they altered their chant to "$50 mil, $60 mil.") They also sang a protest song set to the tune of "Jingle Bells" — urging council members to "vote no now, vote no now, vote no all the way."
Their shouts were often met with boos and heckles like "Go back to your mom's basement" from the pro-arena faction, largely composed of building union members. These activists cheered the bills' passage out of committee.
“Today was a searing indictment of the poor leadership from Council and the Mayor, who collapsed their own deal and were railroaded by billionaires and developers," the No Arena Coalition said in a statement. "It was shocking to see Council leadership declare a bottom dollar figure of $100 million, and completely capitulate to pressure less than 12 hours later.
"We have wasted months of time and countless hours of hearings, for barely any change in a deal that was written by the developers more than two years ago. It's an embarrassing indication of the lack of strategic and tactical skills from a largely rookie Council who got played."
Mayor Cherelle Parker cheered the news in a statement, praising the legislators for taking "monumental action on this $1.3 billion economic development project for Philadelphia that, as I have consistently said, extends far beyond the basketball." The mayor has been a key booster of the proposal; she announced her endorsement in September.
The proposal still hasn't received the official green light from City Council. It will face another vote Dec. 19, when at least nine council members must approve the bills in order for development and construction on the arena to begin. Landau and Gauthier said they "expect to oppose this legislation when it comes up for a final vote" in a joint statement.
"City Council proposed a strong $100 million Community Benefits Agreement with extensive anti-displacement measures created with input from community leaders," the legislators continued. "It is deplorable to learn the 76ers and their billionaire owners think our communities are worth only $60 million over 30 years. They recently gave a single athlete $193 million over 3 years."
The 76ers have long said they need that approval by the end of 2024 to open the venue by 2031, when their lease at the Wells Fargo Center ends.
Staff writer Michaela Althouse contributed to this story.
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